Choi Sangmok: "Korea and US to Prepare 'July Package' for Abolishing US Tariffs by July 8" (Comprehensive)

Briefing on the Results of the 2+2 Trade Consultation
"USTR Representative to Visit Korea Next Month for Working-Level Talks"
"Explanation Provided on Considerations Such as Korea's Political Situation"
"Korean and U.S. Financial Authorities to Hold Separate Discussions on Exchange Rate Policy"

The South Korean government has decided to prepare a "July package" by July 8, before the expiration of the mutual tariff suspension, with the goal of abolishing item-specific and mutual tariffs imposed by the Donald Trump administration.

Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, stated at a briefing on the results of the "Korea-US 2+2 Trade Consultation" held at the Embassy of the Republic of Korea in Washington D.C. on the 24th (local time), "We believe there is a consensus on preparing the July package by July 8, before the mutual tariff suspension ends, with the aim of abolishing tariffs."

He also assessed that a consensus was reached to focus discussions on four key areas: tariffs and non-tariff measures, economic security, investment cooperation, and exchange rates (monetary policy), which are of mutual interest to both sides.

To this end, the two sides have agreed to hold follow-up working-level consultations soon. Choi stated, "More specifically, the Ministry of Trade, Industry and Energy and the U.S. Trade Representative (USTR) will hold working-level consultations in the near future," adding, "We also plan to hold additional high-level consultations with USTR Representative Jamieson Greer, who will visit Korea to attend the Asia-Pacific Economic Cooperation (APEC) Trade Ministers' Meeting on May 15 and 16."

Choi Sangmok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, and Ahn Dukgeun, Minister of Trade, Industry and Energy, held a joint briefing on the Korea-US 2+2 trade consultation on the 24th (local time) at the Embassy of the Republic of Korea in Washington D.C., USA. (Source: Ministry of Economy and Finance)

Regarding exchange rate policy, he said, "The governments of Korea and the United States have agreed to discuss this separately between the Ministry of Economy and Finance and the U.S. Department of the Treasury," and added, "Working-level consultations are expected to take place soon."

Choi explained, "We conveyed our concerns that mutual and item-specific tariffs could negatively affect the economic cooperation between the two countries, and expressed the need for exemptions and exceptions to the tariffs imposed on Korea," adding, "In particular, we focused on explaining the negative impact on the automotive sector, which has the greatest adverse effect on our economy."

He further stated, "We explained that there are various factors to consider in future consultations, such as Korea's political schedule, trade-related laws and regulations, and the need for cooperation with the National Assembly, and requested the U.S. side's understanding of these matters."

Choi emphasized, "Through today's '2+2 meeting,' which marks the starting point of the consultations, we were able to narrow down the consultation agenda and establish a consensus on the consultation schedule, thereby setting up the basic framework for the talks," adding, "This allowed both countries to share an understanding for calm and orderly consultations without rushing."

Ahn Dukgeun, Minister of Trade, Industry and Energy, held a separate meeting with USTR Representative Greer after the '2+2 Trade Consultation,' which was attended by Deputy Prime Minister Choi and U.S. Treasury Secretary Scott Besent. He stated, "I once again requested the exemption of mutual and all other tariffs with the United States."

The two sides also agreed to establish multiple working groups for the consultations. Minister Ahn said, "Working-level consultations between the two countries will be held next week, aiming to produce the July package," and added, "We will strive to maximize the national interest with a calm and sincere attitude."